NAURU’S BLACKLISTED BANKS RE-EMERGE WITH NEW IDENTITIES: FINANCIAL INSTITUTIONS WARNED OF POTENTIAL RISKS

Introduction

The International Chamber of Commerce’s Financial Investigation Bureau (FIB) has issued a warning to financial institutions worldwide, alerting them to the re-emergence of several Nauru-registered banks that have been blacklisted for over a decade. These discredited institutions are attempting to rebrand themselves as new entities, posing significant risks to unsuspecting financial institutions.

Background

Nauru was first designated as a money laundering concern by the US Department of the Treasury in 2002, following the introduction of the Patriot Act. As a result, US financial institutions were prohibited from conducting any financial dealings with Nauru-licensed institutions. However, it appears that some of these blacklisted banks are now attempting to fly under the radar with new identities.

Risks and Consequences

The FIB is concerned that financial institutions may be unknowingly trading with or maintaining correspondent relationships with these discredited Nauru financial institutions. Failure to identify such institutions can lead to potentially severe penalties, including fines and even criminal charges.

Protective Measures

To mitigate these risks, the FIB is offering protective measures, including:

• Asset tracking
• Guidance on how to exit correspondent relationships

The bureau maintains a comprehensive list of all Nauru banks and financial institutions named by the US Department of the Treasury, and is urging financial institutions to be vigilant and aware of this potential threat.

What You Can Do

Financial institutions seeking additional information and clarification are encouraged to contact the FIB at fib@icc-ccs.org.

By staying informed and taking proactive steps to mitigate risks, financial institutions can protect themselves from the potentially devastating consequences of dealing with discredited Nauru banks.